Welcome
TO THE ERA
OF
INTERNET MARKETING
The Supply Chains: Channels and Flows
The Supply Chains: Channels and Flows
GoodsInformation
Funds
DistributorsDistributorsSuppliersSuppliers Mfr.Mfr. RetailerRetailer ConsumersConsumers
The Traditional View
SupplierSupplier ConsumerConsumer
Distributor Distributor
ManufacturerManufacturer
RetailerRetailer
Global Supply Chains are being transformed
Global Supply Chains are being transformed
The Contemporary View
Yoox.com• e-Tailer focused in the fashion industry, started in
2000 by an Italian entrepreneur Federico Marchetti, Founder and CEO,
• 300 well known and luxury brands The group operates in 53 countries
• Sales of 2003: 22 millions €• Sales of 2005: 53 millions € (47% more than 2004)• Sales of 2007 91 millions € ( 38% more that 2006)• Reached the breakeven after 2 years (when the
competitors was running out of business)• Target: Young consumers (51% of customers in
the age group of 25-34 years)
The e-marketing Channel• The company’s website is customised in 28 versions:
this differentiation involves different pricing, offer and communication for each single country.
• Two thirds of customers are women; they look for high quality products and are used to making online purchases.
• Their age ranges from 19 to 29 years • Customer can send the product back without producing
any justification• Three millions visitors each month, 190,000 orders,
400,000 items; number of items proposed on the website is between 100,000 and 150,000 depending upon season. More than 4,000 new daily arrivals.
The e-marketing Channel• The company’s website is customised in 28 versions:
this differentiation involves different pricing, offer and communication for each single country.
• Two thirds of customers are women; they look for high quality products and are used to making online purchases.
• Their age ranges from 19 to 29 years • Customer can send the product back without producing
any justification• Three millions visitors each month, 190,000 orders,
400,000 items; number of items proposed on the website is between 100,000 and 150,000 depending upon season. More than 4,000 new daily arrivals.
AS AN ADVERTISING MEDIUM
A DIRECT RESPONSE MEDIUM
A PLATFORM FOR SALES TRANSACTIONS
A DISTRIBUTION CHANNEL
A RELATIONSHIP BULDING MEDIUM
E-business and e-commerce
The distinction between buy-side and sell-side e-commerce
Types of web presence
• 1. Transactional e-commerce site:Examples – Amazon, Dell
• 2. Services-oriented/relationship building– Accenture, British Gas
• 3. Brand Building site– Tango, Guinness
• 4. Portal or media site– Yahoo!, Silicon.com
A generic internet marketing strategy development process
INTERNET MARKETINGVs
TRADITIONAL MARKETING
Interactivity and intelligence
Individualization
Integration
Disintermediation: The elimination of organizations or business process layers responsible for certain intermediary steps in a value chain, reducing costs to the consumer
Reintermediation: The shifting of the intermediary role in a value chain to a new source, adding additional value to the consumer
INDUSTRY RESTRUCTRING
INDEPENDENCE OF LOCATION
INTERNET TECHNOLOGY
The Internet is a global system of interconnected computer networks
that use the standard Internet Protocol Suite (TCP/IP) to serve billions of users worldwide. It is a network of networks that consists of
millions of private and public, academic, business, and government networks of local to global scope that are linked by a broad array of electronic and optical networking technologies.
The Internet carries a vast array of information resources and services, most notably the inter-linked hypertext documents of the World Wide Web (WWW) and the infrastructure to support
electronic mail.
How it works – client/server
How it works - HTML
Internet, intranet and extranet